TAXATION QUIZ

Are you ready?

• YES

• YEAH

• OO

• G!

A donation is complete when:

• The donor has knowledge of the acceptance of the donee.

• The thing donated is delivered.

• Upon payment of the door's tax.

• Upon execution of the deed of donation.

Julius transferred a car in favor of his friend, Julio. The car’s value at the time of transfer is P300,000. What is the required formality by law in order for the donation to be valid?

• be in a public instrument

• be in a written instrument

• be made orally

• none of the above

Which of the following is exempt from donor's tax if the donated property is located abroad?

• resident citizen

• resident alien

• non-resident citizen

• non-resident alien

Which of the following is not considered within the Philippines?

• Shares of stocks issued by a foreign corporation where 75% of its business is located in the Philippines.

• Franchise exercised in the Philippines.

• Shares of stocks issued by a domestic corporation.

• Bonds issued by a foreign corporation with business situs in the Philippines.

X donated to Y a property worth P600,000 on January 2, 2025. How much is the statutory exempt donation ?

• P600,000

• P250,000

• P350,000

• P0

S1: Donations between husband and wife during marriage are generally void.

S2: Encumbrances on the property donated, if assumed by the donor, are allowed as deductions against gross gift. (PHILCPA)

• True; False

• True; True

• False; True

• False; False

(PHILCPA) Reciprocity applies when the donor and the property donated is a

a. Non-resident alien - Tangible

b. Non-resident alien - Intangible

c. Non-resident citizen - Tangible

d. Non-resident citizen Intangible

• Non-resident alien - Tangible

• Non-resident alien - Intangible

• Non-resident citizen - Tangible

• Non-resident citizen Intangible

Jose donated a vacant lot held as capital asset to his brother-in-law. The assessed value and zonal value of the land were P750,000 and P1,000,000 respectively. The land had an unpaid mortgage of P200,000, which was not assumed by the donee and an unpaid realty tax of P10,000 which was assumed by the donee. The donation is subject to

• Subject to donor's tax only of P44,400

• Subject to capital gains tax only of P60,000

• Subject to donor's tax of P44,400 and capital gains tax of P60,000

• Subject to donor's tax of P44,400 or capital gains tax of P60,000 at the option of Jose

One of the following is not a distinction between donation inter vivos and donation mortis causa

• Donation inter vivos takes effect during the lifetime of the grantor while donation mortis causa takes effect after the death of the grantor.

• Donation inter vivos is subject to donor's tax while donation mortis causa is subject to estate tax.

• Donation inter vivos requires a public document while donation mortis causa may not require a public document.

• Donation inter vivos is valued at fair market value at the time the property is given while donation mortis causa is valued at the fair market value at the time of the death of the grantor.